Anxiety is an occupational hazard, a fact of life, for professional traders. After all, even on good days, something is always going wrong, somewhere.
But when everything starts to go wrong at once, imaginations can run wild. Like now, when everywhere you look, something’s blowing up. In commodities, it’s the record plunge in oil. In equities, it’s six weeks of turbulence in the S&P 500. Debt markets have been rattled by the turmoil engulfing General Electric and PG&E. Bitcoin just plunged 13 percent. And Goldman Sachs, the storied investment bank, is having the worst week since 2016.
"The risk of contagion is understood. What’s not understood is where and how connected things are. Just about anything can create panic, create contagion, and it doesn’t have to be something that makes sense." t.co/vrH69cIPt5 pic.twitter.com/cIJwNjHSAi
— Jesse Felder (@jessefelder) November 16, 2018
Flashing signal of recession ahead:
Today’s global yield curve inversion looks just as concerning as the ones that preceded the last two market crashes!
We now have 11 economies with 30-year yields lower than the fed funds rate. South Korea just joined the pack last month. pic.twitter.com/UttFLXPhwd
— Otavio (Tavi) Costa (@TaviCosta) November 16, 2018
The warning signs today are deafening as compared to 2007/2008.
Still obliviousness persists.
Slow motion train wreck. pic.twitter.com/j09v7ww0Ui
— OW (@OccupyWisdom) November 16, 2018
— M/I_Investments (@MI_Investments) November 16, 2018
— M/I_Investments (@MI_Investments) November 16, 2018
* NVIDIA down 18%
* Williams-Sonoma down 13%
* Nordstrom down 12%
* AMAT down 9%"Incidentally, each company posted EPS either in-line or ahead of the street" – @TommyThornton
— Carl Quintanilla (@carlquintanilla) November 16, 2018
On a day when oil speculators unloaded lopsided long positions, it’s a good time to revisit the chart below (Commodities Index Vs. S&P 500).
Oil might have declined too much too soon and maybe it’s time to consider some long positions in precious metals. pic.twitter.com/RxKPCITpgw
— Otavio (Tavi) Costa (@TaviCosta) November 13, 2018
“Business confidence has never been higher” t.co/QVXdKMvR0z
— Anil (@anilvohra69) November 16, 2018
Hedge funds are using financial engineering common before the financial crisis to borrow money and buy high-yield bonds t.co/nTqVZcoNz6 via @WSJ
— Christopher Whalen (@rcwhalen) November 16, 2018
— Alastair Williamson (@StockBoardAsset) November 16, 2018
Gov't & Fed are trying to prevent a market crash – amount of protection is huge here – pic.twitter.com/GB6dg4fKwp
— Alastair Williamson (@StockBoardAsset) November 16, 2018
“GE is a harbinger for what’s going to happen when large capital structures get downgraded. It’s going to be messy, and it’s going to be painful.” t.co/tkbYcrYmYX pic.twitter.com/HmQW72ZyLi
— Trevor Noren (@trevornoren) November 15, 2018
$GE 5yr CDS are exploding. I cant help but think that this is going to cause some big unintended consequences…$111bn of on balance sheet BBB credit and who knows what else off balance sheet. pic.twitter.com/GjdKVH1Exv
— Raoul Pal (@RaoulGMI) November 15, 2018